East London welcomes holiday-homebuyers

East London experienced an influx of holiday-home buyers over the festive season but there are plenty of choice properties left for those still scouting for second homes in and around the city.

This designer cluster home in the sought-after Bunker’s Hill area of East London is for sale through Harcourts Advantage for R3,3m. It offers four bedrooms, four bathrooms, a designer kitchen, light and spacious living areas and a double garage. Other features include ducted heating, three air conditioners and a solar geyser. Located in a well-run, secure complex, it is close to the Stirling primary and high schools and the East London golf course.?

This is the news from Penny Niemand, owner of local estate agency Harcourts Advantage. "There is an ample stock of good quality properties, partly because the market for second homes here has been subdued until recently."

Prices start at a low R600 000, which will buy a modest fisherman's cottage on the outskirts of the city that is ideal for holidaymakers looking for solitude, she says.

Vacant stands are also readily available, at prices ranging between R300 000 and R900 000 for plots of between 700 and 1200sqm in popular areas such as Cintsa, Glen Eden and Sunrise on Sea.

Niemand says holiday home prices in Cintsa start at around R1m for comfortable three-bedroom units, some with a granny flat attached. Five-bedroom executive holiday homes are available at prices from around R3m.

Meanwhile, she notes, the permanent residential market in East London has picked up strongly lately, leading to stock shortages in the lower price categories. “Government employees upgrading to the suburbs are very active at the R1,2m mark in areas such as Cambridge, Amalinda, Sunnyridge, Greenfields and Rosemount.

“And many of these upgraders are selling their homes in Mdantsane, Haven Hill and Braelyn, opening up opportunities for new entrants to the property market.”

The fourth quarter of 2013 was also typified by renewed interest in residential properties in the R3m to R5m price range, Niemand says. "Executives of big corporates are definitely shopping for luxury properties in Beacon Bay, Vincent Gardens and Bunkers Hill (see picture).

“This is a most welcome development and augers well for the future performance of upmarket holiday homes if wealthy buyers from Gauteng and Bloemfontein follow suit and start returning to our market.”

Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

These days most buyers are using online property portals like Private Property when house hunting due to the convenience, up to date information and variety on offer. “The property portals have revolutionised the way buyers shop, but they do need to be cautious – viewing photos online is no replacement for viewing the property in person,” says Bruce Swain, CEO of Leapfrog Property Group.

Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.

The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.

Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.